Prime Factor Capital: The First Crypto Hedge Fund Approved In The UK

The UK regulators are in the latest cryptocurrency news for approving the first ever cryptocurrency hedge fund named Prime Factor Capital – as a full-scope alternative investment fund manager. In fact, it was the Financial Conduct Authority (FCA) which according to Bloomberg officially regulated this hedge fund.

The UK watchdog has approved Prime Factor Capital, a firm which now must abide by European regulations and will be allowed to hold more than 100 million Euros in assets under management. As the coming altcoin news show, the hedge fund is the first agency to be approved and invest exclusively in the cryptocurrency asset class.

According to its founders, by focusing on a single asset class, Prime Factor Capital will surge ahead of their global competitors and become a trusted authority in crypt investing. As the chief operating officer (COO) at the company Adam Grimsley told Bloomberg:

“Most vehicles for investing in cryptocurrencies are outside the scope of regulators and that’s a big problem in a market that has such a bad reputation.”

Grimsley was featured on many best cryptocurrency news sites, while Prime Factor is required to appoint a custodian under EU regulations – all in order to ensure and validate investors’ returns and the fund’s holdings. This custodian will act independently of the firm but also provide cash flow reconciliation.

The altcoin news show that Prime Factor Capital now manages funds for professional and institutional investors including high net worth individuals, private wealth managers and family offices, as an official company statement showed.

Right now there is no information that is publicly available in regards to the firm’s investment strategy. However, rumors say that the team is comprised of former employees from Blackrock, Legal & General, Goldman Sachs, and Deutsche Bank.

On the official website of Prime Factor Capital, the company CEO Nic Niedermowwe published a report which is named “The Fallacy of Uncollateralised Stablecoins,” speaking about uncollateralized stablecoins and arguing on their problematic issues. He has also considered such objects as the scalability of Bitcoin.

Prime Factor Capital was in the news before for announcing an equity financing round with Speedinvest, a European Fintech investor as well as Entrepreneur First, a talent investor.